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Concentrations of Credit and Sales Risk
3 Months Ended
Jun. 30, 2020
Risks and Uncertainties [Abstract]  
Concentrations of Credit and Sales Risk

NOTE 15 - CONCENTRATIONS OF CREDIT AND SALES RISK

 

The Company derives a majority of its revenues from retailers of products in the United States. The Company’s allowance for doubtful accounts is based upon management’s estimates and historical experience and reflects the fact that accounts receivable are concentrated with several large customers. At June 30, 2020, 74% of accounts receivable were due from three customers in North America that individually owed over 10% of total accounts receivable. At March 31, 2020, 82% of accounts receivable were due from four customers in North America that individually owed over 10% of total accounts receivable.

 

The Company generates most of its revenue from retailers of products in the United States with a significant amount of sales concentrated with several large customers the loss of which could have an adverse impact on the financial position of the Company. For the three months ended June 30, 2020, there were three customers who individually accounted for 10% or more of the company’s net sales. Revenue derived from these customers as a percentage of net sales were 43%, 18% and 11%, respectively. For the three months ended June 30, 2019, there were two customers who individually accounted for 10% or more of the company’s net sales. Revenue derived from these customers as a percentage of net product sales were 85% and 13%, respectively.